SVB: The End of Banking as We Know It?
Capitalisn't
Is There a Better Alternative to a Federal Reserve Account?
I'm sympathetic to the idea that transaction deposit should be insured. But at that point, if you ensure all deposits and you providing a service that is quite cheap to the banks for them to make profit, isn't that better alternative to provide direct access to the Federal Reserve account? Because we're insuring anyway. If we were to do it directly with a central bank digital currency, we will save that money with provide security and we'll have no problem of competition of banks. So why this is a wrong argument? You can directly buy Treasuries and you can buy government money market funds that immediately give you very close to what market rates are right now. I think there are other ways
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